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A
They are the same
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B
A CLIENT has a fiduciary relationship with the brokerage (full duties including loyalty, confidentiality, advocacy); a CUSTOMER is a party who is not represented but with whom the agent works honestly and provides certain non-confidential services; the distinction is important for understanding fiduciary obligations
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C
Clients pay more
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D
Customers always represent buyers
Why this is the answer
Understanding the CLIENT vs CUSTOMER distinction is essential to real estate licensing. CLIENT is a party who has a FIDUCIARY RELATIONSHIP with the brokerage — meaning the brokerage represents them with full fiduciary duties: (1) LOYALTY (acting in client's best interest, even against the agent's interest); (2) CONFIDENTIALITY (protecting confidential information); (3) DISCLOSURE (informing the client of material facts and material information about the transaction); (4) OBEDIENCE (following lawful instructions of the client); (5) REASONABLE CARE AND SKILL (acting with competence); (6) ACCOUNTING (managing client funds appropriately). CUSTOMER, on the other hand, is a party who is NOT represented by the brokerage but with whom the agent works. The agent owes the customer: (1) HONESTY (not lying, not making misrepresentations); (2) FAIR DEALING; (3) DISCLOSURE OF MATERIAL FACTS (typically about the property and material facts); (4) NON-MISREPRESENTATION; but NOT: (1) Loyalty (the agent's loyalty is to their client); (2) Confidentiality of customer's information; (3) Advocacy on the customer's behalf. EXAMPLES: (1) A seller signs a listing agreement → seller is the CLIENT; (2) A buyer signs a buyer agency agreement → buyer is the CLIENT; (3) Without a formal agency agreement, parties may be CUSTOMERS; (4) In transactions, both parties may be customers of their respective brokerages (each represented by their own broker); (5) In TRANSACTION BROKER states (like Florida), neither party may be a 'client' — both may be customers of a transaction broker who facilitates rather than represents. STATE TERMINOLOGY VARIES: (1) Some states use 'client' and 'customer' as distinct terms; (2) Some states recognize 'principal' (client of a fiduciary agent) and 'customer' (everyone else); (3) Some states allow 'designated agency' where two agents in same brokerage represent different parties — each as their CLIENT, while the brokerage may be a designated agent. TRANSACTION BROKER STATES: Florida defaults to transaction broker (non-fiduciary, neutral facilitator). Some other states recognize this concept. The transaction broker provides: limited representation, both parties are customers/principals, no fiduciary relationship. AGENCY DISCLOSURE REQUIREMENTS: Vary by state but most require written disclosure of the agency relationship before substantive contact. The form will indicate whether the consumer is a client (and what type — single agency, dual agency) or a customer. PROPER PROFESSIONAL BEHAVIOR: An agent should never tell a buyer 'I'm working for you' if the buyer is actually a customer (not a client) — this could create implied agency and breach the listing agent's duties to the seller. SOME STATES allow only certain agency types; others permit consumers to choose. INFORMED CONSENT: When dual agency or designated agency is permitted, the consumer must give informed consent in writing.
Source: Client vs Customer Distinction